The third textile, garment, footwear and travel goods minimum wage negotiation for 2025 has yet to reach a consensus, even though employers representatives raised their offer from $1 to $2, while union representatives dropped their rate from $14 to $10.
Heng Sour, Minister of Labor and Vocational Training, said the third wage negotiation was “more remarkable than the previous one” as the employers added another $1 to make it $2.
This is therefore the “latest” offer from the employer, which is $2, and brings the total minimum wage to $206, while the workers’ representative, following an internal meeting, proposed to lower it from $14 to $10.
“So, today [Friday] we see an improvement that comes closer [to an agreement] compared to last week. The employers offered $2 and employees reduced to $10,” Sour said.
During the meeting, each side is expected to consider internal matters, with the ministry hoping that all parties understood what was explained, discussed and have their position changed by the next meeting.
However, Sour said on behalf of the ministry they will try to coordinate, so that the parties understand each other better to achieve a common goal through negotiations, because the main players are the employees and employers. The government will put in extra effort to develop a mechanism and provide reasonable statistical reasons for both sides to refer and discuss.
“In general, we will try to mediate as much as possible, and the outcome will be decided [close to] the final figure. If both sides do not agree, we’ll organize a vote in the next meeting,” he added.
Late August, the ministry said both parties explained their positions “professionally and maturely”, while government representatives moderated and provided additional explanations regarding social norms and the economy to them.
The tripartite meeting will continue on September 12 and 19, with the final one on September 26.
Following the meeting, Kim Chansamnang, deputy chief representative of the Workers’ Professional Organization, shared that they proposed an increase of $14 last week. However, this week after an internal meeting, they decided to reduce it to $10, so that the wage negotiations are acceptable to both parties.
He said the exact figure for additional wages has not been determined yet, whether it is “up or down”, as the demand depends on internal discussions and based on “appropriate reasoning”.
“We need to look at the reality, whether it will be reduced [or increased] for it to be acceptable by us all. If necessary, we will negotiate to an appropriate level,” said Samnang.
In 2024, the minimum wage of workers in the textile, garment, footwear and travel goods sector rose to $204 per month. Along with benefits, a worker can earn between $221 and $232 per month, including other benefits from the Social Security Fund, according to the ministry.
Yang Sophorn, president of the Cambodian Alliance of Trade Unions, told CamboJA News that she was not satisfied with the figure, which ”does not fit with the demand of the employees”.
Sophorn said the reduction from $14 to $10 in the third round was because the workers’ representatives wanted a “joint figure” from the members of the workers’ representatives to negotiate with the employers’ representatives. On the other hand, there are only 17 workers’ representatives, so she ”does not want to have any disagreement” when negotiating minimum wage.
“We don’t want to be divided at this early stage, but if we propose a few numbers, it’ll be difficult for us to negotiate in the final stages,” said Sophorn.
However, she expects employers to raise wages to a level that allows workers to live decently, as the figure proposed by workers’ representatives is to adjust wages to 2.7% market inflation.
“The inflation is 2.7%. If we don’t adjust workers’ wages, can workers survive?” she said, adding that “workers’ wages are not going up, they are just adjusting based on market inflation.”
Kaing Monika, deputy secretary-general of Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), could not be reached for comment when CamboJA News contacted via Telegram and phone.
Mai Samith, 37, has been working at the YTC factory in Kampong Speu province for 13 years and earns $214. He told CamboJA News that there seems to be a significant gap in the salary, ranging between $2 and $14.
The wage negotiations should start at the national or ministry level, involving employers and the government, rather than focusing solely on the daily living conditions of the workers.
“I want to ask the government and employers to do a study on the lives of workers or how they live. Will their wages be able to support their families? At the moment, we cannot live decently, so we [work] overtime, which is a burden,” Samith said.
He said it would be helpful if the government controlled price hikes to make it easier for workers to manage their cost of living based on the economy.
Kroeun Bunlong, who works at Zhen Tai, said his current salary does not match the rise in cost of living. He wants to see wages increase to $250 in 2025 owing to the steady rise in rent, food and daily expenses.
“I want to see more salary in order to support daily living and I want to see the government facilitate the increase in salary,” he said.
